This bill directs the Department of Transportation to establish a Freight Rail Innovation Institute in partnership with an institution of higher education and a freight rail locomotive manufacturer. The institute must carry out a research and development program to develop technologies necessary for the design, development, manufacturing, and operation of zero-emission battery and hydrogen-powered freight locomotives; develop technologies that enhance freight rail safety, efficiency, and utilization; and accelerate the deployment of zero-emission locomotives (including passenger locomotives), supporting supply chains, advanced freight and logistics systems, and related workforce development and education innovations. The non-federal share of the costs of the institute's research and development program shall not be less than 50%.